Eureka! An economic analyst who understands what is actually happening! This embedded video with Mohamed El-Erian accurately explains what is going on economically around the world. As Sundance at CTH, who has been saying this since PDJT took office, notes,
Finally an economic analyst gets prime-time media pundits to listen as he describes the fundamental difference between the U.S. “Economy” (Main Street) and the U.S. “Markets” (Wall Street). Charles Payne understands most of this, but El-Erian has it nailed.
Allianz Group chief economic advisor, Mohamed El-Erian, accurately describes what is happening in an era where deglobalization is taking place. The U.S. economy is strong; however, the multinationals on Wall Street -invested overseas- are exposed. Thus there’s a disconnect and accompanying market volatility.
This is well worth watching because this is the first well-regarded financial pundit that is speaking truth to Wall Street in terms the panel pundits will understand/accept.
There is an interesting slam of the Obama policies by the host at the 6:08 mark. Are more and more people coming around to the fact that Obama’s presidency was a disaster?
There is nothing that China and the EU can do to stop the de-globalization process; and efforts to stimulate their economy, more quantitative easing (pumping money) while the global supply chains are being shifted, are futile.
The more a nations’ economy is dependent on exports, the more exposure they have to the inherent downsides of de-globalization. U.S. companies that are invested in these nations will lose their investment over time; some rapidly. This will keep the stock market volatile, yet the Main Street USA economy is thriving.
President Donald Trump has purposefully stalled the process of globalization, and is resetting global supply chains. This is bringing massive amounts of wealth back into the United States.
In essence Titan Trump is engaged in a process of: (a) repatriating wealth (trade policy); (b) blocking exfiltration (main street policy); (c) creating new and modern economic alliances based on reciprocity (bilateral deals); and (d) dismantling the post WWII Marshall plan of global trade and one-way tariffs (de-globalization).
We hear this phrase from time to time when someone wants to justify some ridiculous thing they said. However, in this case, El-Erian is literally “speaking truth to power.” Of all the activities after World War II that have had the most pernicious effect on the US, the Marshall Plan, which was not needed, was the springboard for policies that have led to the exfiltration of wealth from the US.
PDJT recognizes this and is trying to level the playing field. There are trillions at stake. The Democrats are trying to stop this leveling of the economic landscape since their masters (Deep State, multi-nationals, etc.) stand to lose significant amounts of money. Also, they have no way to win the White House if the economy keeps getting better and better. If PDJT succeeds, literally hundreds of millions of people around the world will benefit.